Big U-turn: Gov’t makes 18.5% coupon payment for first matured bond of 2023
Government has made coupon payments of 18.50% to investors on its 2 year treasury note (GOG-NT-02/01/23-5512-1727-18.50) which matured on Monday, January 2, 2023.
The treasury note worth GHS 1.02bn with a two-year maturity period was issued on January 4, 2021.
Coupon payments made by the government on the two-year treasury note on Tuesday, January 3, is despite earlier statement that no coupons will be paid this year in view of its domestic debt restructuring programme (DDEP).
Coupon payment on the aforementioned treasury note seems to have been honoured possibly because the domestic debt exchange programme is yet to set in after it was postponed twice to January 16, 2023.
Given the 18.5% coupon payment made on the two-year treasury note, government is expected to further honour coupon payments of 20.75% on a three-year bond (GOG-BD-16/01/23-5215-1677-20.75) that matures on January 16, 2023 as the debt exchange may not be completed as scheduled.
Government was compelled to restructure its debt in order to qualify for a $3 billion ECF credit facility from the IMF.
However the deadline for investors to sign up for the debt exchange has been extended on two occasions following labour agitations against the inclusion of pension funds in the programme.
The programme has however been amended to include individual bondholders.
